Enbridge Inc. shares declined on Monday, retreating from near-record levels as the pipeline operator launched a debt-exchange offer and crude oil prices slid. The stock fell 0.99% to C$79.40 on the Toronto Stock Exchange, pulling back from its 52-week high of C$80.65 reached last week.
The broader S&P/TSX composite index hit a new all-time high of 34,778.98, but energy stocks lagged as U.S. crude prices dropped sharply. Enbridge's decline came amid a broader pullback in Canadian energy shares, with TC Energy losing 0.92% to C$97.00 and Pembina Pipeline falling 1.46% to C$67.45. Keyera also dropped 2.58% to C$57.48, suggesting sector-wide weakness.
The company is seeking noteholder approval to swap all outstanding Enbridge Pipelines medium-term note debentures for new Enbridge notes, maintaining the same financial terms. The consent deadline is June 10 at 5 p.m. Toronto time. If holders representing at least 75% of the total principal amount agree, the resolution passes and a scheduled June 25 meeting will be canceled. If not, noteholders will meet as planned.
Enbridge described the swap as offering “operational, structural and capital markets benefits.” The move is part of a broader effort to streamline its capital structure and simplify its corporate hierarchy.
Oil prices fell on Monday amid reports of potential progress in U.S.-Iran talks, which could ease tensions and allow oil to flow more freely through the Strait of Hormuz. Brian Madden, chief investment officer at First Avenue Investment Counsel, told Reuters that “even a non-zero chance the conflict ends” was boosting stocks and pushing oil lower. Lower crude prices typically weigh on energy producers and pipeline companies, as they reduce revenue expectations.
Enbridge’s first-quarter results remain a key backdrop. The company reported adjusted earnings of C$2.1 billion, or C$0.98 per share, and adjusted EBITDA of C$5.8 billion. Adjusted EBITDA is profit before interest, tax, depreciation and amortization, with further adjustments for items not considered part of normal operations.
Enbridge maintained its 2026 outlook for adjusted EBITDA of C$20.2 billion to C$20.8 billion and distributable cash flow per share of C$5.70 to C$6.10. Distributable cash flow, a non-GAAP metric, helps investors assess cash available for dividends and reinvestment. The company also said it has a secured growth backlog of roughly C$40 billion.
Enbridge’s expansion is increasingly focused on renewable energy and data center infrastructure. Last week, the company announced plans to build the first phase of its Cowboy solar-and-battery installation near Cheyenne, Wyoming, to power Meta Platforms’ data centers. The project includes 365 megawatts of solar capacity plus a 200 MW/1,600 MWh battery storage system. Allen Capps, Enbridge’s head of power, described it as “reliable, scalable energy solutions,” while Meta’s Amanda Yang called it “flexible, reliable power.”
Enbridge’s U.S.-listed shares did not trade on Monday as the New York Stock Exchange was closed for Memorial Day, but activity continued in Toronto. Investors face risks from further oil price declines, potential delays in the debt swap, and execution challenges in new ventures such as gas, renewables, and data centers. Markets will watch this week whether Enbridge can hold near the C$80 level, with oil prices and Middle East developments likely to drive sentiment.
